UPP REIT Holdings Limited Consolidated Financial Statements for the Year Ended 31 August 2020
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Registered No: 123688 UPP REIT Holdings Limited Consolidated financial statements for the year ended 31 August 2020 1 UPP REIT Holdings Limited Consolidated financial statements for the year ended 31 August 2020 Pages Contents Directors and advisors ........................................................................................................................................ 3 Strategic report for the year ended 31 August 2020 .......................................................................................... 4 Governance report ............................................................................................................................................ 20 Risk management report ................................................................................................................................... 26 Stakeholder relations ........................................................................................................................................ 29 Environment, Sustainability and Governance (ESG) ........................................................................................ 30 Directors' report for the year ended 31 August 2020 ........................................................................................ 32 Independent auditor’s report to the members of UPP REIT Holdings Limited ................................................. 35 Consolidated statement of profit or loss ........................................................................................................... 43 Consolidated statement of other comprehensive income for the year ended 31 August 2020 ........................ 44 Consolidated statement of financial position .................................................................................................... 45 Consolidated statement of changes in equity for the year ended 31 August 2020 .......................................... 46 Consolidated statement of cash flows .............................................................................................................. 47 1. General information ................................................................................................................................. 48 2. Accounting policies .................................................................................................................................. 48 3. Impact of new accounting standards and changes in accounting policies .............................................. 61 4. Early adoption of Amendments to IFRS 9, IAS 39 and IFRS 7 ............................................................... 64 5. Impact of accounting standards and interpretations in issue but not yet effective .................................. 65 6. Judgements and key sources of estimation uncertainty .......................................................................... 67 7. Segment information ................................................................................................................................ 68 8. Turnover ................................................................................................................................................... 71 9. Operating expenses ................................................................................................................................. 73 10. Directors' remuneration ............................................................................................................................ 74 11. Auditor’s remuneration ............................................................................................................................. 74 12. Employee information .............................................................................................................................. 75 13. Interest and similar income ...................................................................................................................... 75 14. Interest and similar expense .................................................................................................................... 75 15. Tax on loss on ordinary activities ............................................................................................................. 76 16. Intangible assets – Service Concession Arrangements .......................................................................... 77 17. Intangible assets – other .......................................................................................................................... 78 18. Property, plant and equipment ................................................................................................................. 79 19. Leases...................................................................................................................................................... 80 20. Current trade and other receivables ........................................................................................................ 81 21. Current trade and other payables ............................................................................................................ 81 22. Financial assets ....................................................................................................................................... 82 23. Financial liabilities .................................................................................................................................... 82 24. Hedging activities and derivatives ........................................................................................................... 85 25. Fair value measurement .......................................................................................................................... 88 26. Provisions for liabilities ............................................................................................................................. 89 27. Called-up share capital ............................................................................................................................ 90 28. Reserves .................................................................................................................................................. 90 29. Retirement benefit schemes .................................................................................................................... 91 30. Loss per share ......................................................................................................................................... 94 31. Share-based payments ............................................................................................................................ 95 32. Parent undertaking and controlling party ................................................................................................. 96 33. Related party transactions ....................................................................................................................... 96 34. Investments .............................................................................................................................................. 97 35. Non-controlling interests (NCI) ................................................................................................................ 98 36. Cash and cash equivalents .................................................................................................................... 100 37. Reconciliation of movements of liabilities to cash flows arising from financing activities ...................... 100 38. Financial risk management .................................................................................................................... 102 39. Financial commitments .......................................................................................................................... 105 2 UPP REIT Holdings Limited Directors and advisors Directors Irina Frolova Henry Gervaise-Jones Elaine Hewitt Henk Huizing Robert McClatchey Andrew Wilkie Jingshen Hu Secretary Sanne Secretaries Limited Auditor KPMG LLP 15 Canada Square London E14 5GL Registered office IFC 5, St. Helier, Jersey, JE1 1ST 3 UPP REIT Holdings Limited Strategic report for the year ended 31 August 2020 The Directors present their report and financial statements for the year ended 31 August 2020. Highlights for the Year • University of London’s Eleanor Rosa House (511 rooms) becomes operational • Phase Two and Three of the University of Hull’s Westfield Court reach completion, providing a total of 1,462 new rooms • Financial close announced on new £43m deal for the operation of an additional 411 rooms on the University of Swansea’s Bay Campus • Won first private-let contract in £1m deal with Imperial College London to manage 192 rooms at 88 Wood Lane, White City • Following the announcement of the national lockdown due to the COVID-19 pandemic in March 2020, the Group continued to provide services for approximately 9,000 students remaining in residence across the portfolio • We invested in technology and moved our student experience activities online, with more than 50 unique initiatives and events delivered virtually, and hosted nine focus groups attended by more than 50 students • Our student experience team launched our Home @ Halls student blog, with 2,440 visitors across 58 different countries • Despite the impact of the restrictions imposed, rents for Term Three 2019/20 were received in full